Apply PESTEL analysis to the European Brewing Industry identifying key opportunities and threats in 2010.

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Introduction

European Brewing Industry Q) Apply PESTEL analysis to the European Brewing Industry identifying key opportunities and threats in 2010. PESTEL analysis: Political factors: * The government is campaigning strongly against drunk-driving, which is affecting the tendency to drink beer in restaurants, pubs and bars * The Government has the power to set potential fines for the industries that do not meet there standard law requirements * Decline in traditional key markets such as the United Kingdom is due to the fact that there is growing hostility towards 'binge drinking' * Restrictions on packaging, such as; the usage of cans in Denmark Economical factors: * Low growth in consumption of beers * In

Middle

factors: * Growing concerns about health and fitness * Growing concerns about drunk-driving * Underage drinking levels increasing * Binge-drinking in pubs and clubs is being discouraged * Changing social attitudes and tastes such as the way individuals spend their leisure time, for example; going to the cinema, or just 'hanging' out with friends * Peer pressure is an ongoing issue Technological factors: * Changes to certain products * Introduction of new products, such as; fruit flavored beers * Economies of scale in brewing and distribution * Consumer's tastes and preferences changing depending on one's mood Environmental factors: * Ban on cans in favour of environmentally friendly recyclable bottles * Government intervention for

Conclusion

countries, such as China and Brazil, this is an advantage to the European Industry, because there is always the opportunity to merge Threats: * Consumers are growing more and more health conscious and fitness aware that the affects of alcohol are similar, whereas on the other hand beer has the following side effects, such as; weight gain and bloating. These side effects could push consumers to drink other alcoholic beverages, such as spirits and wines * Alcoholic beverages may be very dangerous to one's health * There are numerous players within the beer industry which means there is fierce competition * Concern over alcohol abuse ?? ?? ?? ?? Student I.D: 21036994 1

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